Why is Acme Resources falling/rising?

As of 07-Jul, Acme Resources Ltd is experiencing a price increase, with the current price at 42.50, reflecting a rise of 0.72 or 1.72%. The stock has shown strong performance recently, outperforming its sector by 1.72% today and achieving consecutive gains over the last two days, resulting in a total return of 6.52% during this period. Over the past year, the stock has generated a return of 13.30%, significantly higher than the market average of 1.74%. However, despite these positive short-term movements, the company faces challenges such as operating losses and weak long-term growth, with net sales declining at an annual rate of -7.17%. The stock is also considered expensive relative to its peers, trading at a premium compared to historical valuations.
In the broader market context, Acme Resources has outperformed the benchmark Sensex in the short term, with a 1-week return of +0.45% compared to the benchmark's -0.20%. While the stock has shown resilience and positive momentum in the short term, the long-term fundamentals remain weak, which could pose risks for future performance. The rising investor participation, indicated by a significant increase in delivery volume, suggests growing interest in the stock, but the underlying issues related to profitability and valuation may temper enthusiasm among investors.